Sata srī akāla,
Victoria from Techpoint here,
Here’s what I’ve got for you today:
- Kenya’s High Court slaps 16% VAT on Uber, Jumia, Glovo
- Why Ghana’s new cyber bill is controversial
- Amazon to trim 14,000 workforce to fuel AI dreams
Sendy’s ghost haunts Kenya’s tech platforms
Imagine a company that doesn’t even exist anymore being the reason every tech platform in Kenya is now holding its breath. That’s exactly what’s happening after a High Court ruling involving Sendy, the defunct logistics startup that’s suddenly made life more expensive for ride-hailing, delivery, and eCommerce platforms across the country.
Per Business Daily, platforms like Uber, Bolt, Glovo, and Jumia will be required to pay the full 16% VAT on every single transaction that passes through their systems, not just on the small cut they take as commission. This means if you buy or sell a service for KSh 1,000, for instance, an extra KSh 160 (16%) goes to the Kenya Revenue Authority (KRA) as VAT, making the total cost KSh 1,160.
For years, these platforms only paid VAT on their small cut, say, the 10% commission they took from each job. But after this new court ruling, the taxman could charge VAT on the whole transaction instead.
But how did we get here? The whole saga started when the KRA came after Sendy for KSh 82 million in unpaid VAT. Sendy tried to argue that it was just a tech platform, a digital middleman connecting drivers and customers. But Justice Helene R. Namisi wasn’t buying it. The court found that Sendy controlled nearly every aspect of the service: setting prices, approving deliveries, collecting payments, and managing customer interactions.
In the court’s eyes, that meant Sendy wasn’t just connecting people; it was effectively providing the transport service itself. And for tax purposes, that meant paying VAT on the total amount customers paid, not just the company’s share. The decision sets a powerful precedent that could reshape how Kenya taxes its growing digital economy.
This is bad news for platforms that have long insisted they’re “just apps.” The ruling says if you control how services are priced, delivered, and paid for, you’re in the driver’s seat, and that means you’re also in the taxman’s sightline. Kenya’s eCommerce market, valued at about KSh 146 billion in 2024, could see a major shake-up as a result.
For startups, this ruling could mean thinner margins or higher prices for customers. Some platforms might even consider pulling out smaller traders or informal sellers to avoid the heavier tax load. Others argue it’s fair; if platforms are controlling transactions, they should bear the tax responsibility that comes with that power. Either way, Sendy may be gone, but its tax headache is just getting started for everyone else.
Why Ghana’s new cyber bill is controversial
Ghana’s cybersecurity regulator wants more power, but not everyone’s happy about it. The Cyber Security Authority (CSA) has proposed major changes to the 2020 Cybersecurity Act, and many Ghanaians are calling it a step too far.
The CSA, set up in 2020 to handle cyber threats and strengthen Ghana’s digital defences, says the amendments will help it do its job better. But critics argue the move could concentrate too much authority in the hands of a few.
If the changes go through, the CSA’s Director-General, Deputy, and authorised officers will have powers to arrest, search, and seize when investigating cybercrimes, all under the Attorney General’s oversight. The Authority will also be able to recover proceeds from such crimes, with a new Joint Cybersecurity Committee helping oversee national cyber measures.
Still, there are concerns. Experts warn that giving the CSA powers to certify new tech like AI and blockchain could unintentionally stifle innovation in Ghana’s growing tech scene. Others are uneasy about the Communications Minister’s ability to decide what counts as “critical infrastructure,” fearing this could open the door to government overreach and reduced transparency.
From the fight against cybercrime to questions about digital freedom, this is one amendment that could reshape Ghana’s tech future. Want to know what’s even interesting? Chimgozirim’s latest for Techpoint Africa has all the deets. Please, read it here.
Amazon to trim 14,000 workforce to fuel AI dreams
Word on the block is that Amazon is trimming down again, this time cutting 14,000 corporate jobs as it doubles down on Artificial Intelligence. The company says it wants to “remove layers” and become leaner so it can move faster on its AI bets. It’s Amazon’s second-biggest round of layoffs after slashing 22,000 jobs back in 2022.
While the cuts will mostly hit its corporate division in the US and Europe, the ripple effects could reach Africa too. Amazon is still expanding its footprint across the continent, and these global shifts may reshape how it operates locally, especially in South Africa and Egypt, its two major African focus markets.
In South Africa, Amazon finally launched its long-awaited online marketplace in 2024, bringing direct competition to Takealot, Jumia, and other eCommerce players. But as the company cuts back on administrative and operational roles globally, it could also mean a tighter regional structure for Africa, with more automation and fewer on-ground staff. Egypt, home to one of Amazon’s biggest fulfilment centres in North Africa, could see similar operational streamlining as AI becomes central to how Amazon runs logistics and customer service.
Amazon CEO Andy Jassy has been clear about what’s coming. He says AI will fundamentally change how work gets done at the company, meaning fewer people doing manual tasks and more roles focused on building, training, and managing AI systems. The company has already poured more than $55 billion into tech infrastructure this year, much of it aimed at growing Amazon Web Services (AWS), which also powers startups, fintechs, and enterprises across Africa.
For African businesses that rely on AWS, Amazon’s AI-first shift could bring both opportunities and challenges: more powerful tools, yes, but possibly higher costs or stricter service models as the company reorganises globally. Whether in Cape Town or Cairo, Amazon’s AI transformation is a reminder that the future of work, even for African tech ecosystems, is being reshaped far beyond the continent.
In case you missed it
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Have a wonderful Wednesday!
Victoria Fakiya for Techpoint Africa
